RDIF, Middle Eastern and Asian co-investors and Baring Vostok to acquire an equity stake in Pulkovo Airport from VTB Capital

Press release, 20.04.2017

Moscow, 20 April 2017 — A consortium comprising of the Russian Direct Investment Fund (RDIF), Mubadala Development Company and other leading Middle Eastern and Asian co-investors alongside Baring Vostok Private Equity Fund V and related funds (Baring Vostok) confirmed an agreement to acquire a 25% equity stake in Thalita Trading Limited (Thalita) from VTB Capital. Thalita is the holding company of Northern Capital Gateway Ltd, which operates Pulkovo Airport (LED) in St. Petersburg, Russia.

On completion of the transaction, VTB Capital will reduce its ownership in Thalita to 25.01%, while Fraport AG’s and Qatar Investment Authority’s stakes will remain at 25% and 24.99% respectively. Fraport’s role as the lead airport operator of Pulkovo remains unchanged.

Consortium members have filed an application to the Federal Anti-Monopoly Service of Russia with respect to the transaction.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), noted:
“In line with RDIF`s long-term strategy, this transaction enables leading foreign investors to access major infrastructure assets across Russia. Pulkovo Airport is an excellent example of a successful public-private partnership(PPP) – one of the largest PPPs in Russia – that has created a high-quality and stable asset. As a new shareholder of the airport, we are grateful to our colleagues from VTB Capital for the development of this asset and look forward to effective cooperation with all of our partners.”

Yuri Soloviev, First Deputy President and Chairman of VTB Bank Management Board, said:
“Since the VTB Capital-led partnership with Fraport initiated the development and reconstruction of Pulkovo Airport in 2010, we have been pleased with our investment in the project. Pulkovo’s transformation into a modern air travel hub has been acknowledged both by passengers and the professional airport community. Our long-term strategy has always assumed a gradual divestment once the airport reached target operational and financial results following the project’s completion, and the interest demonstrated by the consortium confirms the investment attractiveness of Pulkovo Airport. We are delighted that such high-calibre international investors are joining as the new shareholders and we are looking forward to developing the airport in partnership with them.”

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru

JSC VTB Bank, its subsidiary banks and financial organisations (VTB Group or the Group) comprise a leading Russian financial group, offering a wide range of financial and banking services and products in Russia, the CIS, and select countries of Europe, North America, Asia, and Africa.
The Group operates in Russia through the parent company VTB Bank and its five subsidiary banks. VTB Group’s largest subsidiary bank in Russia is VTB24. Its subsidiary financial organisations offer insurance, leasing, factoring, and other financial services, as well as services on the stock market.
VTB Group has the most extensive international network of any Russian bank, with more than 30 banks and financial companies in more than 20 countries.
As of 28 February 2017, the Group was the second largest financial group in Russia by assets (RUB 12.54 trillion) and by customer accounts (RUB 8.26 trillion).
The Government of the Russian Federation is VTB Group’s main shareholder and owns 60.9% of the voting shares through the Federal Property Management Agency.
For more information please visit www.vtb.com

Pulkovo Airport is St. Petersburg’s air travel hub and Russia’s fourth-largest airport. The airport handled and served 13.3 million passengers in 2016, approximately 60% greater more than in 2010 when Northern Capital Gateway (NCG) became the airport operator and developer. NCG successfully completed a EUR 1.2 billion airport development and reconstruction program in 2014, which included the iconic and highly acclaimed new international terminal. This project modernized Pulkovo Airport and achieved the current capacity of 17 million passengers per year. Pulkovo Airport has been recognized on a number of occasions as one of Europe’s leading airports by various authoritative industry organizations. Further information can be found at www.pulkovoairport.ru/en/